In this article, we will be looking into ten dividend stocks that have outperformed the market so far in 2025.
As in previous years, the dividend stocks are proving their value in 2025 by delivering returns at a comparatively higher rate than the benchmark index. Following a standout 2024, the market has also been facing a lot of turbulence in the past few weeks. However, some dividend-paying companies are holding themselves strong against this headwind, managing to reward the stockholders with income growth and capital appreciation. Thinking about the possibility of economic uncertainty leads investors to prioritize stability, and our list holds the 10 dividend stocks, which they may just be looking for.
The previous decade witnessed the growth stocks dominating the headlines, mainly as tech leaders delivering astounding returns. The tightening monetary policies and elevated interest rates have been pushing investors to shift their focus instead toward income-generating assets in recent years. A report by S&P Global anticipates a 7% increase in the total U.S. dividends in 2025, reaching a value of $784 billion, making the cash flows from the dividend stocks more appealing in an unpredictable economic environment.
READ ALSO: Dividend Stock Portfolio For Income: Top 10 Stocks to Buy
Historically, dividend stocks have been the go-to investment for investors when there is an economic slowdown. For instance, during the 2008 financial crisis and even the Covid-19 downturn, the dividend payers cushioned the impact of market volatility. Once again, such resilience, demonstrated by the dividend stocks, helps in understanding why investors are leaning toward reliable dividend payers in 2025. This preference for stability, however, is not solely driven by historical precedent, with the current economic climate also playing a significant role.
Interest rate changes have been among the significant factors driving the success of dividend stocks. An increase in the interest rates in 2022 and 2023 made borrowing expensive. However, with the cautious stance of the Federal Reserve in 2025, companies with more substantial balance sheets and sustainable dividends are increasingly thriving. Though this indicates the worthiness of dividend-paying stocks, it also cautions the investors against risky stocks, thereby raising the question of distinguishing between thriving dividend-payers and those posing potential risk.
Of course, not all dividend stocks are created equal. While some companies offer high but unsustainable yields, some show consistent payout growth, making the latter more attractive for long-term investments. Hence, the dividend growth, payout ratio, financial health, current operational status, future potentials, and the analyst’s outlook for the company must all be considered before deciding on a worthy investment.
Applying these rigorous criteria, 2025 can be an exceptional year for a select group of dividend-paying stocks. The companies on our list are not just paying dividends. They are growing them. Without further ado, we will dive into 10 dividend stocks outperforming the market this year. Stick with us as we count these stocks from 10 to 1 and highlight why they stand out in the investment market. The top five hold a few unexpected contenders.
A stock market graph. Photo by energepic.com
Our Methodology
We set a few key criteria to find the best dividend stocks outperforming the market in 2025. First, we only considered companies with a market cap of at least $1 billion. This is to make sure that the companies in our list are financially strong. Next, we looked for stocks with a year-to-date (YTD) return higher than 1.46%. Also, each stock had to offer a dividend yield of at least 4%, since we wanted our list to be appealing for income-focused investors. In addition to these criteria, while exploring the stocks, we looked into dividend yield, payout ratio, and the number of hedge funds holding to create a list that would benefit the readers. The stocks are ranked according to their dividend yields.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Rexford Industrial Realty, Inc. (NYSE:REXR)
Dividend yield: 4.16%
Dividend payout ratio: 139.17%
Ex-Dividend Date: March 31, 2025
Number of Hedge Funds: 24
Rexford Industrial Realty, Inc. (NYSE:REXR) is a self-administered, self-managed, full-service real estate investment trust operating from California, U.S. The company primarily focuses on transforming industrial real estate across infill Southern California. This differentiated strategy, along with the company’s proprietary value creation and asset management capabilities, leads to the development of internal and external growth opportunities.
As of February 28, 2025, the company’s year-to-date growth stood at 6.88%. The fourth quarter earnings call highlighted a 7% increase in the funds from operations (FFO) per share during 2024. Rexford (NYSE:REXR) also reported a lease of 1 million square feet in the Q4 of 2024, with a 55% increase in rental rates after accounting for concessions such as free rent or tenant improvements and a 41% increase in rental rates from previous leases to new leases. Additionally, the $1.5 billion worth of acquisitions completed in 2024 is expected to generate a 5.6% unlevered stabilized yield. The market reception of the company’s performance translates to a positive outlook.
Rexford (NYSE:REXR) offers a 4.16% dividend yield but carries a high payout ratio of 139.17%, which may raise concerns regarding the company’s ability to meet its debt obligations and invest in upcoming business opportunities. The stock has attracted 24 hedge funds listed in the Insider Monkey database, as of Q4 2024.
Analysts maintain a Hold rating, with a 1-year median price target of $45 projecting an 8.91% upside. Investors can purchase shares before March 31, 2025, and benefit from the upcoming dividend payout.
9. Nutrien Ltd. (NYSE:NTR)
Dividend yield: 4.16%
Dividend payout ratio: 158.82%
Ex-Dividend Date: March 31, 2025
Number of Hedge Funds: 37
The Canadian fertilizer company, Nutrien Ltd. (NYSE:NTR) is manufacturing and distributing nearly 26 million tonnes of potash, nitrogen, and phosphate products globally. Their customer segment is comprised of agricultural, industrial, and feed customers across the world.
The company saw an increase of 18.52% in its year-to-date ending February 28, 2025. It was majorly contributed by the investors’ sentiment towards the agricultural and fertilizer sector, which was less volatile than other sectors. Nutrien (NYSE:NTR) saw an increase in fertilizer sales volume of 1 million tonnes, with the retail adjusted EBIT up by 16% from the previous year. The company has raised its dividends 7 times since 2018, bringing its current dividend to a 38% increase in the last 7 years. The company’s progress in the nitrogen brownfield expansions at two North American sites is expected to increase production capabilities.
Nutrien Ltd. (NYSE:NTR) offers a dividend yield of 4.16%. The payout ratio stands high at 158.82%, raising sustainability concerns. The stock has seen engagement from 37 hedge funds acknowledged in the Insider Monkey Q4 2024 database, suggesting heavy institutional backing.
Analysts hold a consensus Buy rating, with a 1-year median price target of $60. The projected potential gain is 14.59% of the current price. The next ex-dividend date for those tracking distributions is March 31, 2025.
8. Bridge Investment Group Holdings Inc. (NYSE:BRDG)
Dividend yield: 4.19%
Dividend payout ratio: 219%
Ex-Dividend Date: March 14, 2025
Number of Hedge Funds: 15
The American-based alternative investment company, Bridge Investment Group Holdings Inc. (NYSE:BRDG), is focused on investments in the real estate sector and credit investments. Since its incorporation in 2009, the company has expanded into other investment areas, such as the private-equity secondary market, property technology, and renewable energy.
With a year-to-date growth of 24.88%, ending February 28, 2025, Bridge Investment (NYSE:BRDG) currently oversees $50 billion in assets, focusing on residential and industrial properties. The reported earnings per share of $0.18 exceeds the analyst forecast of $0.17. In its fourth earnings call, the company announced the expansion of its logistics strategies. It has also launched the PE secondaries business, whereby it will buy and sell existing investor commitments in PE funds rather than investing directly in a company. It has gained a positive outlook for the company.
Bridge Investment (NYSE:BRDG) offers a dividend yield of 4.19% with a payout ratio of 219%, raising concerns regarding the company’s use of debts in dividend payments. Fifteen hedge funds, followed by Insider Monkey, hold a stake in the company, as of Q4 2024, indicating moderate institutional interest.
Analysts hold a consensus Buy rating for the stock, with their 1-year median price target indicating a 9.63% upside from current levels as of March 3. Investors can purchase the stock before March 14, 2025, if they intend to benefit from the next dividend payout.
7. WesBanco, Inc. (NASDAQ:WSBC)
Dividend yield: 4.22%
Dividend payout ratio: 64.16%
Ex-Dividend Date: March 10, 2025
Number of Hedge Funds: 21
The U.S.-based banking company WesBanco, Inc. (NASDAQ:WSBC) is the second largest bank headquartered in West Virginia and offers a wide range of banking and financial services, including retail banking, corporate banking, trust, and investment services, as well as insurance and brokerage services. The company operates in eight states across the U.S.
The company’s year-to-date returns came in at 7.78% by February 28, 2025. The increase was because of strong loan growth and a strategic merger with Premier Financial. WesBanco (NASDAQ:WSBC) saw a strong loan growth of $1 billion, entirely funded by deposit growth. Though the merger with Premier Financial Corp is pending, the company anticipates regulatory approvals soon. These growths currently shape the future positive outlook. Additionally, based on its Q4 earnings call, the company’s diluted EPS surpassed its previous year’s value by 29%. Without including the merger and restructuring expenses, net income stands at $146.4 million for 2024.
WesBanco (NASDAQ:WSBC) offers a 4.22% dividend yield with a payout ratio of 64.16%. The comparatively low payout ratio suggests a balanced approach to shareholder returns. The stock has seen investment from 21 hedge funds from the Insider Monkey database at the end of Q4 2024.
Analysts are maintaining a Buy rating. The 1-year median price target of $41 indicates a potential 16.91% upside from the current price as of March 3, 2025. Investors should watch the ex-dividend date on March 10, 2025, if looking to benefit from the payout on April 1, 2025.
6. UGI Corporation (NYSE:UGI)
Dividend yield: 4.39%
Dividend payout ratio: 58.82%
Ex-Dividend Date: March 17, 2025
Number of Hedge Funds: 31
UGI Corporation (NYSE:UGI) is a gas and electric power distribution company. Based in Pennsylvania, U.S., the company distributes and markets energy products and services, including natural gas, LPG, electricity, and renewable energy solutions.
As of February 28, UGI (NYSE:UGI) recorded an upward year-to-date return of 21.01%. In their Q1 earnings call, the adjusted diluted EPS of the company saw a 14% increase, year-over-year, standing at $1.37. The company attributes this increase to its performance in natural gas and international propane businesses and a renewed focus on its AmeriGas division. Additionally, the $200 million in capital investment, along with being recognized as a Cogent 2024 Utility Customer Champion, suggests the possibility of further expansion in business and broader appreciation among customers, thus boosting the company’s value in the market.
UGI (NYSE:UGI) maintains a dividend yield of 4.39% with a payout ratio of 58.82%. The latter suggests a relatively stable distribution policy. The company has attracted interest from 31 hedge funds listed in Q4 2024 Insider Monkey’s database, indicating a solid level of institutional investment.
Analysts remain optimistic, issuing a consensus Buy rating. The 1-year median price target of $34.50 implies a modest 1% upside. Investors aiming to benefit from the next dividend payout should note the upcoming ex-dividend date of March 17, 2025.
5. Simon Property Group, Inc. (NYSE:SPG)
Dividend yield: 4.51%
Dividend payout ratio: 111.57%
Ex-Dividend Date: March 10, 2025
Number of Hedge Funds: 53
Simon Property Group, Inc. (NYSE:SPG) is an American-based investment trust engaged in owning, developing, managing, leasing, acquiring, and expanding income-producing retail real estate assets like shopping malls, outlets, and lifestyle centers. Their portfolio includes national and internationally renowned assets, including Simon Premium Outlets, The Mills, and Taubman Portfolio.
Simon Property Group, Inc. (NYSE:SPG) saw its year-to-date increase to 8.06% as of February 28, 2025. The adjusted EBITDA of the company declined by 12.8% year-over-year in the last quarter of 2024 due to economic and market conditions, tenant bankruptcies, and competitive pressures. However, Simon (NYSE:SPG) reported a 2.5% average base minimum rent increase. Part of its report also disclosed higher retailer sales per square foot at $739. The company has further signed leases for over 21 million square feet. The leases are expected to generate revenue of over $1 billion, increasing their cash flow visibility and leading to the current positive outlook.
Simon (NYSE:SPG) maintains a 4.51% dividend yield with a payout ratio of 111.57%. The latter suggests a slight reliance on outside funds to support the dividend payments. However, institutional interest remains strong, with 53 hedge funds from Insider Monkey’s database holding positions in Q4 2024.
Analysts have issued a consensus Hold rating. The 1-year median price target of $192 suggests a limited 3.18% upside. Investors interested in the upcoming dividend payment must purchase shares before March 10, 2025.
4. Eversource Energy (NYSE:ES)
Dividend yield: 4.78%
Dividend payout ratio: 125.99%
Ex-Dividend Date: March 4, 2025
Number of Hedge Funds: 40
The U.S.-based company, Eversource Energy (NYSE:ES) provides electricity, natural gas, and water services to over 4 million customers. The company’s locations include Connecticut, Massachusetts, and New Hampshire. It also offers real-time outage tracking services. Customers can view their specific outage status using an online outage map and online account resources.
Eversource Energy (NYSE:ES) saw an increase of 9.72% year-to-date ending February 28, 2025. The rise in value is partly due to higher revenues from base distribution rate increases at Eversource’s Massachusetts natural gas businesses. The continued investments in Eversource’s natural gas infrastructure also increased. Higher depreciation, interest, and property tax expense were challenging for the company. Yet the company increased its EPS by 5.3%, per its fourth-quarter earnings call transcripts. The company also announced its aim of raising $1.2 billion of equity between 2025 and 2029, suggesting further growth in its value.
Eversource Energy (NYSE:ES) presents a dividend yield of 4.78%, supported by a payout ratio of 125.99%. The high distribution level suggests the involvement of debt funds. With 40 hedge funds from Insider Monkey holding positions in Q4 2024, a strong institutional confidence is recognized.
Analysts maintain a consensus Buy rating, while the 1-year median price target of $71 suggests a potential 12.68% return. Interested investors should note the upcoming ex-dividend date on March 4, 2025.
3. The Toronto-Dominion Bank (NYSE:TD)
Dividend yield: 4.89%
Dividend payout ratio: 87.08%
Ex-Dividend Date: April 10, 2025
Number of Hedge Funds: 26
The Toronto-Dominion Bank (NYSE:TD), headquartered in Ontario, Canada, offers financial services including personal, small business, and commercial banking solutions. The company’s customer base comprises both institutional and retail clients.
With a year-to-date increase of 12.53%, the banking company saw a year-over-year revenue growth of 91% in its most recent quarter. The EPS of Toronto-Dominion Bank (NYSE:TD), reported to be $2.02 in the first quarter of 2025, has surpassed the analyst’s forecast of $1.99. The sale of its Schwab stake and a substantial $ billion share buyback program allow the company to overcome unfavorable market conditions.
Toronto-Dominion (NYSE:TD) delivers a 4.89% dividend yield with an 87.08% payout ratio. Though the payout ratio is notably high, it indicates the potential of the company’s dividend policy to cover its dividend payments with its earnings. Twenty-six hedge funds in the Insider Monkey database hold ownership of the company’s stocks, suggesting a high institutional interest.
Analysts are maintaining a consensus Buy rating with a 1-year median price target of $67.44, suggesting a 12.57% upside from the current price as of March 3, 2025. Investors can purchase the shares before April 10, 2025, to be qualified for the next dividend payout.
2. Broadstone Net Lease, Inc. (NYSE:BNL)
Dividend yield: 6.88%
Dividend payout ratio: 134.30%
Ex-Dividend Date: March 31, 2025
Number of Hedge Funds: 20
Broadstone Net Lease, Inc. (NYSE:BNL) is a U.S.-based real estate investment trust. The industry-focused company invests primarily in single-tenant commercial real estate properties net leased on a long-term basis to a diversified group of tenants. The different property types that the company deals with include healthcare, restaurants, retail, office, and industrial properties.
As of February 28, 2025, the year-to-date of Broadstone (NYSE:BNL) stands at 6.88%. The company’s adjusted funds from operations (AFFO) grew to $1.43 per share. The fourth quarter results also announced the simplification of the clinical healthcare portfolio alongside $400 million in total investments. John Moragne, Chief Executive Officer of Broadstone (NYSE:BNL), also talked about the company’s future progress.
“We are well set up for growth in 2025 and beyond through our differentiated core building blocks of growth, including a strong pipeline of new investments and more than $200 million of high-quality build-to-suit developments scheduled to phase into completion during 2025 and 2026.”
The anticipated continued expansion, arising from solid investment pipelines and premium developments, strengthens the positive outlook for the company.
Broadstone (NYSE:BNL) provides a 6.88% dividend yield. However, a high payout ratio of 134.30% signals concerns regarding the company’s potential to cover its future investments. Hedge fund holders in Q4 2024 stands at 11, indicating moderate institutional backing of the stock.
Analysts offer a mixed Buy and Hold rating. The 1-year median price target of $18 suggests a 6.82% upside. Investors purchasing stocks before March 31, 2025, will be eligible for dividend payment on April 15, 2025.
1. TELUS Corporation (NYSE:TU)
Dividend yield: 7.28%
Dividend payout ratio: 232.33%
Ex-Dividend Date: March 11, 2025
Number of Hedge Funds: 16
TELUS Corporation (NYSE:TU) is a Canadian company that provides wireless and wireline telecommunication services, including voice, data services, mobile, IP, television, video and security, internet, and cloud-based solutions. Headquartered in British Columbia, Canada, the company offers its services to North America, Europe, Asia, and Central America.
TELUS Corporation (NYSE:TU) experienced a year-to-date increase of 15.02% as of February 28, 2025. The recently reported fourth-quarter results saw an EPS of $0.54, which surpassed the anticipated $0.49 increase. Revenue also surpassed the forecasted value of 32.07 billion USD to 32.23 billion USD. Performance efficiency was attributed to new telecom customer services in 2024. The company gained over 1,200,000 new customers because of its bundled product offerings across mobile and home. The financial performance and visible increase in customer base have garnered a positive outlook for the company’s stocks in the market.
TELUS Corporation (NYSE:TU) features a substantial 7.28% dividend yield. However, it is backed by a large payout ratio of 232.33%. Hence, the possibility of debt risk stands high. The stock has drawn investment from 16 hedge funds in Q4 2024, tracked by Insider Monkey.
Analysts maintain a consensus Buy stance for the stocks. The 1-year median price target of $16.14 suggests an upside of 4.30%. The ex-dividend date falls on March 11, 2025, for the consideration of income-focused investors.
Overall TELUS Corporation (NYSE:TU) ranks first on our list of 10 dividend stocks that are outperforming the benchmark index in 2025. While we acknowledge the potential for TU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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